Oriental Bank of Commerce

From Wikipedia, the free encyclopedia Jump to: navigation, search This article relies on references to primary sources or sources affiliated with the subject, rather than references from independent authors and third-party publications. Please add citations from reliable sources. (September 2011) This article relies largely or entirely upon a single source. Please help improve this article by introducing citations to additional sources. Discussion about the problems with the sole source used may be found on the talk page. (September 2011)

Oriental Bank of Commerce

Type

Public (BSE: 500315, NSE: ORIENTBANK) Banking Financial services 19 February 1943 New Delhi, India S.L.Bansal
(Chairman & MD)

Industry

Founded Headquarters

Key people

Products

Investment Banking Consumer Banking Commercial Banking Retail Banking Private Banking Asset Management Pensions Mortgages Credit Cards Rs. 11457.17 Crore (2010) [1] Rs. 1134.68 Crore (2010)[1] Rs. 8237.958 Crore (2010)[1] 15,358 (2010)[1] www.obcindia.co.in

Revenue Net income Total assets Employees Website

Oriental Bank of Commerce (BSE: 500315, NSE: ORIENTBANK) is an India-based bank established in Lahore (then a city of British India, and currently in Pakistan), is one of the public sector banks in India. The Company operates in four segments: treasury operations, corporate/wholesale banking, retail banking and other banking business operations.

Contents

1 History 2 Chairpersons 3 Overview 4 Amalgamation of Global Trust Bank 5 See also 6 References 7 External links

[edit] History
Oriental Bank of Commerce made a beginning under its Founding Father, Late Rai Bahadur Lala Sohan Lal, the first Chairman of the Bank. Within four years of coming into existence, the Bank had to face partition. Branches in the newly formed Pakistan had to be closed down and the Registered Office had to be shifted from Lahore to Amritsar. Late lala Karam Chand Thapar, the then Chairman of the Bank, in a unique gesture honoured the commitments made to the depositors from Pakistan and paid every rupee to its departing customers.[citation needed] The Bank has witnessed many ups and downs since its establishment. The period of 1970-76 is said to be the most challenging phase in the history of the Bank.[citation needed] At one time profit plummeted to Rs.175, that prompted the owner of the bank, the Thapar House, to sell / close the bank. Then employees and leaders of the Bank came forward to rescue the Bank. The owners were moved and had to change their decision of selling the bank and in turn they decided to improve the position of the bank with the active cooperation and support of all the employees. Their efforts bore fruits and performance of the bank improved significantly. This was the turning point in the history of the bank.[citation needed] The bank was nationalized on 15th April, 1980. At that time total working of the bank was Rs.483 crores having 19th position among the 20 nationalised banks. Within a decade the bank turned into one of the most efficient and best performing banks of India.[citation needed] The bank has progressed on several fronts crossing the Business Mix mark of Rs 2 lacs crores as on 31st March 2010 making it the seventh largest Public Sector Bank in India, achievement of 100% CBS, reorienting of lending strategy through Large & Mid Corporates and establishment of new wings viz., Rural Development and Retail & Priority Sector. The Bank has to its utmost credit lowest staff cost with highest productivity in the Indian banking industry.[citation needed]

[edit] Chairpersons
The Chairpersons (CMD)of the banks were as under: Sl No Name Period
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Karam Chand Thapar 1946 to 1961 L. M. Thapar 1961 to 1969 R. P. Oberoi 1973 to 1976 M. K. Vig 1976 to 1983 P. S. Gopalakrishnan1984 to 1988 S. P. Talwar 1988 to 1990 S. K. Soni 1990 to 1996 Dalbir Singh 1996 to 2000 B. D. Narang 2000 to 2005 K. N. Prithviraj 2005 to 2007 Alok Kumar Misra 2007 to 04/08/2009 T. Y. Prabhu 2009 to jan 2011 Nagesh Paidah jan 2011 onwards

[edit] Overview
The bank offers features such as internet banking, phone banking NRI banking etc. However, it does not allow online banking access from outside India. The Bank has launched yet another people's participation in the planning process at grass root level essentially to tackle the maladies of poverty. The Grameen Projects venture aims to alleviate poverty plus identify the reasons responsible for the failure or success. OBC is already implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan). Formulated on the pattern of the Bangladesh Grameen Bank, the Scheme has a unique feature of disbursing small loans ranging from Rs. 75 (~US $1.5) onwards. The beneficiaries of the Grameen Project are mostly women.The Bank is engaged in providing training to rural folk in using locally available raw material to produce pickles, jams etc. This has provided self-employment and augmented income levels thus reforming lives of rural folk and encouraging cottage industries in rural areas.[citation needed] OBC launched yet another unique[citation needed] scheme christened 'The Comprehensive Village Development Programme' on the auspicious day of Baisakhi, the 13th of April 1997 at three villages in Punjab namely Rurki Kalan (Distt. Sangrur), Raje Majra (Distt. Ropar) and Khaira Majha (Distt. Jaladhar) and two villages in Haryana, namely Khunga (Distt. Jind) and Narwal (Distt. Kaithal). The pilot launch was a great success. Emboldened by the success, Bank extended the programme to more villages. At present, it covers 15 villages; 10 in Punjab, 4 in

Haryana and 1 in Rajasthan. The programme focuses on providing a comprehensive and integrated package providing rural finance to the villagers with Village Development as its focus, thus contributing towards infrastructural development and augmentation of income for each farmer of the village. The Bank has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs.[citation needed]

[edit] Amalgamation of Global Trust Bank

On 14 August 2004, Global Trust Bank Limited (GTB) was amalgamated into OBC. GTB was a leading private sector bank in India that was associated with various financial discrepancies leading to a moratorium being imposed by RBI shortly before being merged into OBC.

Oriental Bank of Commerce

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 nationalised 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 business figures of Oriental Bank of Commerce India for the last five years are as under:

Rupees in Lakhs FOR THE YEAR Total Income Total expenditure Net Profit for the year AT THE END OF Capital & Reserves Deposits Advances Total Assets No. of branches No. of employees The National Institute of 1998-99 204641 181629 23012 Mar-99 123148 1680488 770756 1878416 899 14447 Bank 1999-2000 267943 240081 27862 Mar-00 142840 2209521 932553 2454120 915 14398 (NIBM), 2000-2001 302645 282356 20288 Mar-01 154866 2468043 1107641 2707243 932 13588 rated OBC Bank 2001-2002 351438 319383 32055 Mar-02 161973 2848839 1415787 3226292 967 13589 as "Customer 2002-2003 383566 337871 45695 Mar-03 210934 2980909 1567723 3398763 989 13507 Friendly" Bank.

Management

Oriental Bank of Commerce Fact File

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

One of the Lowest Spreads in Banking Industry Total Working crosses the 35700 crore mark CRISIL Ratings The Highest Productivity per Employee NPA - One of the lowest

1. OBC India Grameen Project OBC India is implementing Grameen Projects in places like Dehradun in UP and Hanumangarh in Rajasthan. The Grameen Project of OBC India venture aims to alleviate poverty alongwith to identify the reasons responsible for the future or success. OBC has formulated the pattern of Bangladesh Grameen Bank with a unique feature of disbursing small loans ranging from Rs. 75 onwards. The Bank is providing training to rural people in using locally available raw material to produce pickles, jams etc. This inreturn increases self-employment and adds in increasing the income levels. OBC India is also working upon The Comprehensive Village Development Programme. At present it is covering number of villages in Punjab, Haryana, Rajasthan. Under this programme, Oriental Bank of Commerce is focussing upon comprehensive and integrated package to rurals. Profitability of OBC The gross profit OBC Bank stood at Rs. 1533 Crore as against Rs. 1163 Crore last year. After providing for contingencies and more than required provisions against non performing assets, the Bank has earned a handsome net profit of Rs. 686 Crore as against Rs. 457 Crore last year, thereby registering a growth of 50 % mainly on account of reduction in cost of deposits, strict control on expenses, efficient cash management, treasury income and large recoveries in N P A accounts. Dividend of OBC The Oriental Bank of Commerce has provided for payment of 30% final dividend to the shareholders in addition to 20% interim dividend already paid during the financial year 2003-04 making total dividend 50%. Retail Portfolia of OBC The retail loans of OBC have increased to Rs. 4318 Crores as against Rs. 2779 Crores last year, with a growth of 55.4%. These assets constitute 20.9 % of total loan assets. Oriental Bank of Commerce Housing loans account for 80% of retail portfolio. OBC Shareholder's Equity

The Net worth of Oriental Bank of Commerce has improved by Rs.567.46 Crore and reached a level of Rs. 2676.79 Crore against Rs. 2109.33 Crore last year. The OBC Business The total business of Oriental Bank of Commerce has gone up to Rs. 56286 Crore from Rs. 46333 Crore last year thus registering a growth of 21.5%, due to high growth in deposits as well as advances. The deposit growth of OBC has been to the extent of 19.7 %(previous year 4.63%) while in advances the growth is 25.5 % (previous year 10.7%). Technology Implementation Oriental Bank of Commerce of India has implemented Centralized Banking Solution in 21 branches till date. It will give freedom of anywhere and anytime banking to customers. The business captured has resulted in 97% live computerized environment as against 93% last year. More than 350 branches have been networked Current news

Oriental Bank of Commerce cuts lending, deposit rates by up to 0.5%

Story Comments

Post a comment

Email this article

Mail This Article

Print this article

Save this article My Saved articles

Reduce font size Increase font size

Share on Hotklix

Share on Facebook Share on Twitter

Digg Hotklix Google Bookmarks Reddit Live Bookmarks Yahoo Bookmarks Del.icio.us StumbleUpon Newsvine Technorati Blogmarks Facebook ApnaCircle Read more on senior citizens|Oriental Bank of Commerce|fixed deposit rates|Bank of Baroda|auto loans Tweet

NEW DELHI: State-owned Oriental Bank of Commerce (OBC) today slashed base rate or minimum lending rate by a marginal 0.1 per cent while fixed deposit rates on select maturities by up to 0.5 per cent. The bank has reduced the base rate by 10 basis points to 10.65 per cent from 10.75 per cent, OBC said in a statement. The reduction in base rate will make all kind of loans, including housing, auto loans cheaper by at least 0.1 per cent. The new rate would be effective from tomorrow, it said. As far as deposit rates are concerned, the bank reduced interest rate on fixed deposits with maturity between 1-2 years by 0.25 per cent to 9.50 per cent. For term deposits worth Rs 15 lakh to Rs 1 crore with maturity between 46-90 days, the new interest rate will be 0.5 per cent lower than the existing 9 per cent.

Further the bank has increased its rate of interest applicable for senior citizens from 0.5 per cent to 0.6 per cent over and above the card rate. The new fixed deposit rates would be effective from April 16. Interestingly, some of the large public sector banks like Bank of Baroda, Bank of India raised their deposit rates upwards last month. Increased in the fixed deposit rates by these banks was due to tight liquidity situation. To improve liquidity in the system, RBI in March had reduced the cash reserve ratio (CRR)-- the portion of deposits banks require to keep with the central bank -- from 5.5 per cent to 4.75 per cent. With the reduction, the central bank pumped in Rs 48,000 crore in the economy.

MUTUAL FUNDS

A mutual fund is a type of professionally-managed collective investment scheme that pools money from many investors.[1] While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment schemes that are regulated, available to the general public and open-ended in nature. Hedge funds are not considered a type of mutual fund. The term mutual fund is less widely used outside of the United States. For collective investment schemes outside of the United States, see articles on specific types of funds including openended investment companies, SICAVs, unitized insurance funds, unit trusts and Undertakings for Collective Investment in Transferable Securities. In the United States, mutual funds must be registered with the Securities and Exchange Commission, overseen by a board of directors or board of trustees and managed by a registered investment advisor. They are not taxed on their income if they comply with certain requirements. Mutual funds have both advantages and disadvantages compared to direct investing in individual securities. They have a long history in the United States. Today they play an important role in household finances. There are 3 types of U.S. mutual funds: open-end, unit investment trust and closed-end. The most common type, the open-end mutual fund, must be willing to buy back its shares from its investors at the end of every business day. Exchange-traded funds are open-end funds or unit investment trusts that trade on an exchange. Open-end funds are most common, but exchangetraded funds have been gaining in popularity. Mutual funds are classified by their principal investments. The four largest categories of funds are money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. Funds may also be categorized as index or actively-managed. Investors in a mutual fund pay the funds expenses. There is controversy about the level of these expenses. A single mutual fund may give investors a choice of different combinations of expenses by offering several different types of share classes.

[edit] Structure
In the United States, a mutual fund is registered with the Securities and Exchange Commission (SEC) and is overseen by a board of directors (if organized as a corporation) or board of trustees (if organized as a trust). The board is charged with ensuring that the fund is managed in the best interests of the fund's investors and with hiring the fund manager and other service providers to the fund. The fund manager, also known as the fund sponsor or fund management company, trades (buys and sells) the fund's investments in accordance with the fund's investment objective. A fund manager must be a registered investment advisor. Funds that are managed by the same fund manager and that have the same brand name are known as a "fund family" or "fund complex". Mutual funds are not taxed on their income as long as they comply with requirements established in the Internal Revenue Code. Specifically, they must diversify their investments, limit ownership of voting securities, distribute most of their income to their investors annually, and earn most of the income by investing in securities and currencies.[2] Mutual funds pass taxable income on to their investors annually. The type of income they earn is unchanged as it passes through to the shareholders. For example, mutual fund distributions of dividend income are reported as dividend income by the investor. There is an exception: net losses incurred by a mutual fund are not distributed or passed through to fund investors. Mutual funds may invest in many kinds of securities. The types of securities that a particular fund may invest in are set forth in the fund's prospectus, which describes the fund's investment objective, investment approach and permitted investments. The investment objective describes the type of income that the fund seeks. For example, a "capital appreciation" fund generally looks to earn most of its returns from increases in the prices of the securities it holds, rather than from dividend or interest income. The investment approach describes the criteria that the fund manager uses to select investments for the fund. A mutual fund's investment portfolio is continually monitored by the fund's portfolio manager or managers, who are employed by the fund's manager or sponsor. Hedge funds are not considered a type of mutual fund. While they are another type of commingled investment scheme, they are not governed by the Investment Company Act of 1940 and are not required to register with the Securities and Exchange Commission (though many hedge fund managers now must register as investment advisors).

[edit] Advantages and Disadvantages

Mutual funds have advantages compared to direct investing in individual securities.[3] These include:

Increased diversification Daily liquidity Professional investment management Ability to participate in investments that may be available only to larger investors Service and convenience Government oversight Ease of comparison

Mutual funds have disadvantages as well, which include[4]:

Fees Less control over timing of recognition of gains Less predictable income No opportunity to customize

[edit] History
The first mutual funds were established in Europe. One researcher credits a Dutch merchant with creating the first mutual fund in 1774.[5] The first mutual fund outside the Netherlands was the Foreign & Colonial Government Trust, which was established in London in 1868. It is now the Foreign & Colonial Investment Trust and trades on the London stock exchange.[6] Mutual funds were introduced into the United States in the 1890s.[7] They became popular during the 1920s. These early funds were generally of the closed-end type with a fixed number of shares which often traded at prices above the value of the portfolio.[8] The first open-end mutual fund with redeemable shares was established on March 21, 1924. This fund, the Massachusetts Investors Trust, is now part of the MFS family of funds. However, closed-end funds remained more popular than open-end funds throughout the 1920s. By 1929, open-end funds accounted for only 5% of the industry's $27 billion in total assets.[9] After the stock market crash of 1929, Congress passed a series of acts regulating the securities markets in general and mutual funds in particular. The Securities Act of 1933 requires that all investments sold to the public, including mutual funds, be registered with the Securities and Exchange Commission and that they provide prospective investors with a prospectus that discloses essential facts about the investment. The Securities and Exchange Act of 1934 requires that issuers of securities, including mutual funds, report regularly to their investors; this act also created the Securities and Exchange Commission, which is the principal regulator of mutual funds. The Revenue Act of 1936 established guidelines for the taxation of mutual funds, while the Investment Company Act of 1940 governs their structure. When confidence in the stock market returned in the 1950s, the mutual fund industry began to grow again. By 1970, there were approximately 360 funds with $48 billion in assets.[10] The introduction of money market funds in the high interest rate environment of the late 1970s boosted industry growth dramatically. The first retail index fund, First Index Investment Trust,

was formed in 1976 by The Vanguard Group, headed by John Bogle; it is now called the Vanguard 500 Index Fund and is one of the world's largest mutual funds, with more than $100 billion in assets as of January 31, 2011.[11] Fund industry growth continued into the 1980s and 1990s, as a result of three factors: a bull market for both stocks and bonds, new product introductions (including tax-exempt bond, sector, international and target date funds) and wider distribution of fund shares.[12] Among the new distribution channels were retirement plans. Mutual funds are now the preferred investment option in certain types of fast-growing retirement plans, specifically in 401(k) and other defined contribution plans and in individual retirement accounts (IRAs), all of which surged in popularity in the 1980s. Total mutual fund assets fell in 2008 as a result of the credit crisis of 2008. In 2003, the mutual fund industry was involved in a scandal involving unequal treatment of fund shareholders. Some fund management companies allowed favored investors to engage in late trading, which is illegal, or market timing, which is a practice prohibited by fund policy. The scandal was initially discovered by then-New York State Attorney General Eliot Spitzer and resulted in significantly increased regulation of the industry. At the end of 2010, there were over 15,000 mutual funds of all types in the United States with combined assets of $13.1 trillion, according to the Investment Company Institute (ICI), a national trade association of investment companies in the United States. The ICI reports that worldwide mutual fund assets were $24.7 trillion on the same date.[13] Mutual funds play an important role in U.S. household finances. At the end of 2010, they accounted for 23% of household financial assets. Their role in retirement planning is particularly significant. Roughly half of assets in 401(k) plans and individual retirement accounts were invested in mutual funds.[13]

[edit] Leading complexes

At the end of October 2011, the top 10 mutual fund complexes in the United States were:[14]
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Vanguard Fidelity American Funds (Capital Research) BlackRock PIMCO Franklin Templeton JPMorgan SSgA T. Rowe Price Federated

[edit] Types
The Investment Company Act of 1940 established three types of registered management investment companies in the United States: open-end funds, unit investment trusts (UITs); and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that trade on an exchange; they have gained in popularity recently. While the term "mutual fund" may refer to all three types of registered investment companies, it is more commonly used to refer exclusively to the open-end type.
[edit] Open-end funds

Open-end mutual funds must be willing to buy back their shares from their investors at the end of every business day at the net asset value computed that day. Most open-end funds also sell shares to the public every business day; these shares are also priced at net asset value. A professional investment manager oversees the portfolio, buying and selling securities as appropriate. The total investment in the fund will vary based on share purchases, share redemptions and fluctuation in market valuation. There is no legal limit on the number of shares that can be issued. Open-end funds are the most common type of mutual fund. At the end of 2010, there were 7,581 open-end mutual funds in the United States with combined assets of $11.8 trillion.[13]
[edit] Closed-end funds

Closed-end funds generally issue shares to the public only once, when they are created through an initial public offering. Their shares are then listed for trading on a stock exchange. Investors who no longer wish to invest in the fund cannot sell their shares back to the fund (as they can with an open-end fund). Instead, they must sell their shares to another investor in the market; the price they receive may be significantly different from net asset value. It may be at a "premium" to net asset value (meaning that it is higher than net asset value) or, more commonly, at a "discount" to net asset value (meaning that it is lower than net asset value). A professional investment manager oversees the portfolio, buying and selling securities as appropriate. Closed-end funds have been declining in popularity. At the end of 2010, there were 624 closedend funds in the United States with combined assets of $241 billion.[13]
[edit] Unit investment trusts

Unit investment trusts or UITs issue shares to the public only once, when they are created. Investors can redeem shares directly with the fund (as with an open-end fund) or they may also be able to sell their shares in the market. Unit investment trusts do not have a professional investment manager. Their portfolio of securities is established at the creation of the UIT and does not change. UITs generally have a limited life span, established at creation. Like closed-end funds, UITs have been declining in popularity. At the end of 2010, there were 5,971 UITs in the United States with combined assets of $51 billion.[13]

[edit] Exchange-traded funds Main article: Exchange-traded fund

A relatively recent innovation, the exchange-traded fund or ETF is often structured as an openend investment company, though ETFs may also be structured as unit investment trusts, partnerships, investments trust, grantor trusts or bonds (as an exchange-traded note). ETFs combine characteristics of both closed-end funds and open-end funds. Like closed-end funds, ETFs are traded throughout the day on a stock exchange at a price determined by the market. However, as with open-end funds, investors normally receive a price that is close to net asset value. To keep the market price close to net asset value, ETFs issue and redeem large blocks of their shares with institutional investors. Most ETFs are index funds. ETFs have been gaining in popularity. At the end of 2010, there were 923 ETFs in the United States with combined assets of $992 billion.[13]

[edit] Investments and classification

Mutual funds are classified by their principal investments. The four largest categories of funds are money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. Within these categories, funds may be subclassified by investment objective, investment approach or specific focus. The SEC requires that mutual fund names not be inconsistent with a fund's investments. For example, the "ABC New Jersey Tax-Exempt Bond Fund" would generally have to invest, under normal circumstances, at least 80% of its assets in bonds that are exempt from federal income tax, from the alternative minimum tax and from taxes in the state of New Jersey.[15] Bond, stock and hybrid funds may be classified as either index (passively-managed) funds or actively-managed funds.
[edit] Money market funds

Money market funds invest in money market instruments, which are fixed income securities with a very short time to maturity and high credit quality. Investors often use money market funds as a substitute for bank savings accounts, though money market funds are not government insured, unlike bank savings accounts. Money market funds strive to maintain a $1.00 per share net asset value, meaning that investors earn interest income from the fund but do not experience capital gains or losses. If a fund fails to maintain that $1.00 per share because its securities have declined in value, it is said to "break the buck". Only two money market funds have ever broken the buck: Community Banker's U.S. Government Money Market Fund in 1994 and the Reserve Primary Fund in 2008. At the end of 2010, money market funds accounted for 24% of the assets in all U.S. mutual funds.[13]

[edit] Bond funds

Bond funds invest in fixed income securities. Bond funds can be subclassified according to the specific types of bonds owned (such as high-yield or junk bonds, investment-grade corporate bonds, government bonds or municipal bonds) or by the maturity of the bonds held (short-, intermediate- or long-term). Bond funds may invest in primarily U.S. securities (domestic or U.S. funds), in both U.S. and foreign securities (global or world funds), or primarily foreign securities (international funds). At the end of 2010, bond funds accounted for 22% of the assets in all U.S. mutual funds.[13]
[edit] Stock or equity funds

Stock or equity funds invest in common stocks. Stock funds may invest in primarily U.S. securities (domestic or U.S. funds), in both U.S. and foreign securities (global or world funds), or primarily foreign securities (international funds). They may focus on a specific industry or sector. A stock fund may be subclassified along two dimensions: (1) market capitalization and (2) investment style (i.e., growth vs. blend/core vs. value). The two dimensions are often displayed in a grid known as a "style box." Market capitalization or market cap indicates the size of the companies in which a fund invests, based on the value of the company's stock. Each company's market capitalization equals the number of shares outstanding times the market price of the stock. Market capitalizations are typically divided into the following categories:

Micro cap Small cap Mid cap Large cap

While the specific definitions of each category vary with market conditions, large cap stocks generally have market capitalizations of at least $10 billion, small cap stocks have market capitalizations below $2 billion, and micro cap stocks have market capitalizations below $300 million. Funds are also classified in these categories based on the market caps of the stocks that it holds. Stock funds are also subclassified according to their investment style: growth, value or blend (or core). Growth funds seek to invest in stocks of fast-growing companies. Value funds seek to invest in stocks that appear cheaply priced. Blend funds are not biased toward either growth or value. At the end of 2010, stock funds accounted for 48% of the assets in all U.S. mutual funds.[13]

[edit] Hybrid funds

Hybrid funds invest in both bonds and stocks or in convertible securities. Balanced funds, asset allocation funds, target date or target risk funds and lifecycle or lifestyle funds are all types of hybrid funds. Hybrid funds may be structured as funds of funds, meaning that they invest by buying shares in other mutual funds that invest in securities. Most fund of funds invest in affiliated funds (meaning mutual funds managed by the same fund sponsor), although some invest in unaffiliated funds (meaning those managed by other fund sponsors) or in a combination of the two.
[edit] Index (passively-managed) versus actively-managed Main articles: Index fund and active management

An index fund or passively-managed fund seeks to match the performance of a market index, such as the S&P 500 index, while an actively managed fund seeks to outperform a relevant index through superior security selection.

[edit] Expenses
Investors in a mutual fund pay the fund's expenses. These expenses fall into four categories: distribution charges (sales loads and 12b-1 fees), operating expenses (which include the management fee and other fund expenses), shareholder transaction fees and securities transaction fees. Some of these expenses reduce the value of an investor's account; others are paid by the fund and reduce net asset value. Operating expenses are included in a fund's operating expense ratio, or simply the "expense ratio".
[edit] Distribution charges Main article: Mutual fund fees and expenses

Distribution charges pay for marketing, distribution of the fund's shares as well as services to investors. These fees are commonly called 12b-1 fees, named after Rule 12b-1 of the Investment Company Act of 1940, which permits funds to adopt a Plan of Distribution, under which these fees exist.
[edit] Front-end load or sales charge

A front-end load or sales charge is a commission paid to a broker by a mutual fund when shares are purchased. It is expressed as a percentage of the total amount invested (including the frontend load), known as the "public offering price." The front-end load often declines as the amount invested increases, through breakpoints. Front-end loads are deducted from an investor's purchase by means of paying the net asset value per share (the share's value) plus the commission.

[edit] Back-end load

Some funds have a back-end load, which is paid by the investor when shares are redeemed depending on how long they are held. The back-end loads may decline the longer the investor holds shares. Back-end loads with this structure are called contingent deferred sales charges (or CDSCs). As front-end loads are streamed off purchases, back-end loads are withheld from redemption proceeds with the amount of the CDSD, if any, deducted from the redemption.
[edit] No-load funds

A no-load fund does not charge a front-end load under any circumstances, does not charge a back-end load under any circumstances and does not charge a 12b-1 fee greater than 0.25% of fund assets.
[edit] Operating Expenses, Expense Ratio, Expense Limitations or Caps

Like any business, funds incur ordinary recurring costs of operating the fund. With most "actively managed" funds (the adviser actively makes investment decisions based on a strategy and other disciplines as opposed to simply following or benchmarking an index), the single largest operating expense of a the fund is the Management or Investment Advisory fee.
[edit] Expense Ratio

Annual operating expenses divided by average daily net assets for the same period of time is equal to the Operating Expense Ratio, or simply the expense ratio. The expense ratio highlights how much fund expenses come out of a shareholder's investment return and allows comparison from one fund to the next. Other fees and charges dilute returns but they are not included in the expense ratio.
[edit] Expense Limitations or Caps, Yield Flooring Waivers

Often, funds have an upper limit set on annual operating expenses to keep the expense ratio fair and competitive, which is negotiated between the fund board and the adviser (fund manager or sponsor) or other affiliates. Typically, the adviser or affiliate agrees to waive fees and/or reimburse the fund to the extent ordinary annual operating expenses exceed some set ratio. These waivers result in the fund having a lower "net" expense ratio that it would otherwise. Expense caps are either 'contractual' or 'voluntary'. Contractual caps exist under written agreement and usually must be in effect for one or more years. Voluntary caps are not under a contractual obligation and can be discontinued at any time. Yield Flooring or Support Waivers: Similar to an upper limit on expenses, in times of very low interest rates like at present in 2012, yield sensitive funds such as money market funds may also have waivers in effect by advisers in order to maintain some minimum yield such as 0.01% annualized. Such waivers are called yield "support" or "flooring" waivers and may be in concert with traditional expense caps.

Group Discussion topics for Marketing Students:

A Unipolar World spells disaster for underdeveloped countries like India. Is Globalisation Really Necessary? What shall we do about our ever-increasing Population? Corruption is the price we pay for Democracy. Foreign Television Channels are destroying our culture. What India needs is a Dictatorship. With media publishing and telecasting trivia, censorship is the need of the hour. Kaun Banega Krorepati is less about knowledge but more about money and personality. Beauty contests degrade womanhood Are Big Dams Necessary? Films are corrupting the Indian Youth A Gandhian State selling liquor is an anomaly Bride burning and dowry may look bad, but are an integral part of India. Our Culture is Decaying We are not serious about saving Wildlife/Environment The education system needs serious reforms The impact of MTV on our psyche Showing Violence and Crimes should not be allowed in films and on television. Let us legalise gambling The rise of regional blocs threatens independent nations like India

GD - Group Discussion topics for Finance:

As a management student, what could be done to control subprime crisis? Hard Working or smart working..?? One should never judge a person by external appearances.. Are women managers better managers Which will be the upcoming profession in coming years Is money is sweeter than honey in todays world..?? Flexi timings or fixed timings - which is better at work Skilled manpower shortage in India The broadcasting code in Britain should never allow the product promotion in television programmes. Like that India should issue a broadcasting code and the prominence should given to the programmes Which is more important value of the customer or value to the customer? Is the growth in India confined to the growth in Sensex ? Economic development at the cost of Ecological Degradation What should be the objective of a company profits or customer Are ethics and business compatible? Entry of MNCs and their business ethics Principles of Mahatma Gandhi; are they valid today? Our country needs more MBAs than technocrats Professional management is a must to attain targeted growth

Public sector should be handed over to independent professional managers Will the mushrooming of MBA institutes in India produce professional managers Management education is a luxury for a poor country like India? What will the present budget be like?

PRODUCTS Oriental Bank of Commerce

Founded in 1943, Oriental Bank of Commerce is one of the most admired public sector banks in India. On its way towards success, it has made a number of acquisitions.

About Oriental Bank of Commerce (OBC) Oriental Bank of Commerce was established in 1943. The bank started its operations in Lahore, Pakistan. The founder of the bank was Rai Bahadur Lala Sohan Lal who was also the first chairman of the bank. Oriental Bank has gone through a lot of upheavals but it managed to overcome those disruptions. The time period of 1970 to 1976 was the most difficult period in the history of Oriental Bank of Commerce. The collective effort of the employees and the management played a key role behind the banks recovery from that situation. This was a defining moment in the banks history. Oriental Bank of Commerce was nationalized in 1980. Currently, it is one of the most efficiently performing banks in India. The bank has made its mark in different areas which includes accomplishment of 100% CBS. Oriental Bank of Commerce is known for its minimum staff expenditure against maximum productivity in the banking sector. At present, the Chairman and Managing Director of OBC is Shri T.Y. Prabhu. The bank has 1,508 branches in all and more than 1,000 ATMs. Total business of OBC has crossed Rs. 2 Lakh crores and the customer base has surpassed 13.5 million. Products and services of Oriental Bank of Commerce Given below is an all-inclusive list of products and services offered by Oriental Bank of Commerce: Deposit Schemes 1. 2. 3. 4. 5. 6. 7. OBC Aadhar ORIENTAL 500 Basic Banking Account Flexi Fixed Deposit Scheme Current Accounts Saving Accounts Tax Saving Term Deposit

8. 9. 10. 11. 12.

Term Deposit Jeevan Sarathi for PH Variable Progressive Deposit Unnati Deposit Scheme Pragati Deposit Scheme

Loan

Vehicle/Car Loan Scheme Housing Loan Personal Loan Scheme Educational Loan Scheme Loans to Professionals Loans to Doctors Loan to Defence Personnel Clean Loan to Traders Loan to SMEs
1. Loan to SMEs 2. Debt Restructuring Scheme (DRS) for SMEs (Small and Medium Enterprises) 3. List of Regional MSME Centers

Loan to Women
1. 2. 3. 4. Scheme for Professional & Self Employed Women Oriented Mahila Vikas Yojana Scheme for Financing Working Women Scheme for Beauty Parlor/Saloons/Boutiques/Tailoring

Agriculture Loan Scheme

1. Composite Credit Scheme for Agricultural Leading 2. Kisan Credit Card-Oriented Green Card (OGS) 9. Scheme for Financing Farmers for Purchase of second hand Trucks and Other 10. Schemes for Financing Farmers for Purchase of Trucks and Other

3. Advance against Warehouse Receipts to Farmers 4. Overdraft Facility to Farmers 5. Agriculture Clinic & Agriculture Business Centers 6. Purchase of Land for Agriculture Purposes 7. Scheme for Financing Commission Agents 8. Financing Two/Three Wheelers to Farmers

11. Scheme for Financing Working Capital Requirement of Cold Storage 12. Scheme for purchase of Tractor 13. Scheme for purchase of Second Hand Tractor 14. Scheme for Financing Timber Merchants and Saw Mills 15. Agricultural Loan against security of Gold Jewellery

Other Loan Schemes Loan against Govt. Securities Swarojgar Credit Card Scheme Laghu Udhami Credit Card-Oriented business Card Scheme (OBCS) Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Services NRI Services Facilities Representative Office - Dubai PIO NRI Mode of Remittance How to Open the Account

Types of Accounts Non-Residence Ordinary (NRO) Non-Residence External (NRE) Resident Foreign Currency Foreign Currency Non-Residence

Internet Banking Services Accounts Related Operations View transactions Online Balance Inquiry Cheque Status Inquiry Statement of Account For a particular period, limit of Cheque nos & Amount Stop Payment of Cheques Clearing Instruments Inquiry

Fund Transfer Operations Funds Transfer to own accounts Funds Transfer to other accounts within Core Banking Branches of OBC

CUSTOMERS SATISFACTION
Customer satisfaction refers to the extent to which customers are happy with the products andservices provided by a business.Customer satisfaction levels can be measured using survey techniques and questionnaires
DEFINITIONS:Definition 1:

C u s t o m e r s a t i s fa c t i o n i s e q u i v a l e n t t o m a k i n g su r e t h a t p r o d u c t a n d s e r v i c e performance meets customer expectations.

Definition 2:

Customer satisfaction is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation.
Definition 3:

Customer satisfaction occurs when acquisition of products and/or services providesa minimum negative departure from expectations when compared with other acquisitions.Gaining high levels of customer satisfaction is very important to a business because satisfactionc u s t o me r s a r e mo st l i k e l y t o b e l o y a l a n d t o m a k e r e p e a t o r d e r s a n d t o u se a w i d e r a n g e o f services offered by a businessThere are many factors which lead in high levels of customer satisfaction including.Products and services which are customer focused and hence provide high levels of value for money.What is clear

about customer satisfaction is that customers are most likely to appreciate thegoods and services that they buy if they are made to feel special. This occurs when they feel thatthe products and services that they buy have been specially produced for them or for people likethem