A STUDY ON DEPOSIT MOBILISATION OF CATHOLIC SYRIAN BANK Ltd.

WITH SPECIAL REFERENCE TO PALARIVATTOM BRANCH

Dissertation Submitted To The MAHATMA GANDHI UNIVERSITY

In partial fulfillment of the requirement for the degree of

Bachelor

of

Commerce

By Helna Mary Joseph

REG NO. 133370

Under the guidance of SRI

GRADUATE DEPARTMENT OF COMMERCE BHARATA MATA COLLEGE THRIKKAKARA KOCHI -682021,KERALA 2011-2012 BHARATA MATA COLLEGE,THRIKKAKARA Graduate Department Of Commerce and Research Centre

(Affiliated to Mahatma Gandhi University)

KOCHI, KERALA-682021

Date

CERTIFICATE

This is to certify that the dissertation entitled A Study on Deposit Mobilisation of Catholic Syrian Bank Limited, with special reference to Palarivattom Branch is an authentic record of work done by Helna Mary Joseph, under my supervision and guidance and that no part thereof has been presented earlier for the award of any Degree, Fellowship or Associateship etc.

Sri.

DECLARATION

I hereby declare that this declaration entitled A Study on the Deposit Mobilization of Catholic Syrian Bank Ltd, with special reference to Palarivattom Branch is a bona fide work done by me under the supervision of . and this work has not previously formed the basis for the award of any Degree, Diploma, Associateship, Fellowship or other similar title of recognition.

HELNA MARY JOSEPH

Place : Thrikkakara Date :

ACKNOWLEDGEMENT
This dissertation has been done under the supervision ofI express my deep sense of gratitude for her scholarly guidance and timely instructions and encouragement. I acknowledge my sincere thanks to for his valuable guidance and constant encouragement. I have much pleasure in expressing my gratitude for the greatest help given to me by the liberation of the . I thankfully acknowledge my indebtedness to the respected teachers of our Department of Commerce. I acknowledge my immense gratitude to Mr.Anilkumar,the manager of Catholic Syrian Bank Ltd., Palarivattom who has helped me in compiling the required data and other informations regarding the bank. I express my sincere thanks to the staff to Catholic Syrian Bank Ltd., Palarivattom for their co-operation in furnishing the necessary information during the work. I am thankful to my classmates who have contributed concrete suggestions and pulled one during phases of difficulties. I am also thankful to my parents for their timely advice and suggestions.

Finally my most grateful thanks to the GOD without whose abounding grace this work would not have come about.

CONTENTS
Chapter Particulars Page No:

1 2 3 4

INTRODUCTION.. PROFILE OF CATHOLIC SYRIAN BANK LTD PALARIVATTOM BRANCH THEORETICAL FRAMEWORK- DEPOSIT ANALYSIS OF DEPOSIT MOBILISATION BY THE BANK FINDINGS & CONCLUSION

BIBLIOGRAPHY

LIST OF TABLES

Table No:

Title

Page No:

CHAPTER 1 INTRODUCTION

INTRODUCTION
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks(that is with the Government of India holding a stake), 31 private banks(these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. Banking has played a very important role in the economic development of country. It is the life-blood of trade and commerce. They are so important that modern business is certainly impossible without them, and no country can achieve commercial and industrial progress in the absence of a sound banking system. Banking systems play a pivotal role in the economic development of a country like India. Their performance is all more important. Their activities are to be directed in such a way that they function effectively and efficiently. In addition to lending and borrowing of money, a modern bank performs a host of other functions. All of which are not considerable utility to its customers and the community generally. According to sec.5(b) of the Banking Regulation Act 1940, banking means, the accepting for the purpose of lending or investment of deposit money from the public repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. In short banking is acceptance of money with one hand and lending it through the order. The foreign banks were the first bank established in India. These are known as exchange banks.
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History Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires shareholders to be held liable for the company's debt) It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". Deposits play an important role in any Banking system. Deposits provide limits to the working capital of the bank. The higher the deposits, the higher will be the funds at the disposal of the bank to lend and earn profit. The deposits, of any bank are of two major types, deemed deposit and time deposit. In order to attract customers the banks offer attractive facilities to different type of deposit account holders. In order to avoid competition among different banks, the RBI has been given the power to fix deposit interest rate. The Reserve Bank for this purpose, issues directive from time to time. No bank can play interest on deposit in excess of the rates prescribed by the Reserve Bank. One of the major growth oriented function of the banking industry is the mobilization of deposits, which serves as the basis for capital formation and facilitates the process of economic development. Mobilization and development of resources in loans and investment are the basic functions of a bank. The role of banking industry essentially is to mobilize and appropriately analyze savings, which is the second stage of capital formation. The importance of banking system lies in providing suitable opportunities to collect together the savings and in influencing the willingness of the people to save and invest. A bank is essentially an intermediary of short-term funds. A good banker is one who effectively mobilizes the savings of the community. In the commercial banking system the level of deposits depends primarily on the amount of credit extended by banks in the form of loans and investments. The level of economic activity influences the level of deposits in banks. Deposits are higher during the prosperity phase of business cycle than in the period of recession and depression. Deposit activity is affected by the amount of government expenditure. Deposits with commercial banks are the most popular form of investment media. A various combination of demand, term and recurring deposits banks have brought spectrum of deposit scheme. A large number of new schemes have been introduced for deposit mobilization.
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The bank accepts variety of deposits and grant loan to the members at concessional rate of interest. The various deposits of the bank include fixed deposits, recurring deposits, saving deposits, current deposits, etc. Loans are granted for agricultural purpose, education, medical treatment, general purpose, marriage etc. Increasing deposits with the banks will help to bring to the organized market savings that are idle or are wasted or are used in creating assets, which may not confirm to plan priorities. Catholic Syrian Bank has chosen Sun Microsystems to implement its core banking solution (CBS) that will help customers access the banks services through the branches, Website and ATMs (automated teller machines). CSB will Rs40 crore on the solution, which includes hardware, software, application and network. The centralised banking solution (called Maarvel) was developed jointly with Laser Soft, a Chennaibased company. Sun has provided servers and storage devices and Wipro is the system integrator.).

Board of directors
VP ISWARDAS Managing Director & CEO AJAY LAL S SWAMINATHAN PRAKASH G TOLE C F JOHN JOS C CHACKO C K GOPINATHAN N R ACHAN S SANTHANAKRISHNAN RAKESH MATHUR G SREEKUMAR K IPE PETER T S ANANTHARAMAN SUMEER BHASIN Objectives of the study 1. To examine the growth and development of deposit mobilization of Catholic Syrian Bank Ltd. 2. To analyze the trend in deposits of Catholic Syrian Bank Ltd, Palarivattom Branch. 3. To evaluate the deposit mobilization scheme of Catholic Syrian Bank Ltd.

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Statement of the problem The basic objective behind the bank is to serve the public. Banks attract the different types of customers by providing different deposit schemes offered at higher rate interest and there by encourage investment in economy, trade, and commerce. The deposit of Catholic Syrian Bank, one of the leading private sector banks, is taken for the study to analysis the deposit growth through this selected branch (palarivattom branch). The problem under the study is to analyse the deposit mobilization of the bank and its trend over last years. Methodology The study is both descriptive and analytical in nature. For the purpose of study both primary and secondary data were used. The primary data required for the study have been collected by means of discussion with officials of the bank. Secondary data required for the study have been collected from the journals, annual reports and other documents of the bank. Tools and techniques Various statistical tools like Percentages, Ratios, Compound growth rates are used.

Period of Study The study covers for a period of five years. The study is carried on the basis of the information from 2006 to 2011.

Limitations of the study 1. The study is based on only five years annual reports. 2. The researcher was not in a position to conduct an intensive study of the deposit mobilization of the bank, due to shortage of time. 3. There is only one aspect as deposit mobilization.

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The study is based on the secondary data which are obtained from various annual reports and bulletins. 5. The study is only about one branch. 6. The study is limited to the analysis from the point of view of institution and also to the analysis of the deposit mobilization of Catholic Syrian Bank Ltd, Palarivattom branch only.
4.

CHAPTERISATION

CHAPTER 1 INTRODUCTION
The first chapter gives introduction on the subject matter under study. It consists of objectives, scope of the study, methodology, tools of analysis, period of study, limitations faced by the study and the chapter scheme.

CHAPTER 2 PROFILE OF THE BANK

It consists of the incorporation, history, objectives, capital and reserve of the bank, organization structure and details about the branch selected for the study. A brief outline about the bank is presented.

CHAPTER 3 THEORETICAL FRAME WORK

The chapter lays emphasis on the different deposits offered by bank in general, their features, terms and conditions etc.

CHAPTER 4 ANALYSIS OF DEPOSIT MOBILIZATION

This chapter analysis the various data related to the objectives of the study. This analysis work is mainly based on figures supplied by the branch.

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CHAPTER 5 CONCLUSIONS
This chapter contains a summary of findings based on the analysis work. It is this chapter, which concludes the work.

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CHAPTER 2

PROFILE OF CATHOLIC SYRIAN BANK LTD PALARIVATTOM BRANCH

Profile of Catholic Syrian Bank Ltd, Palarivattom Branch

Genesis
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The genesis of Indian Banking is associated to a large extent with Swadeshi Movement, which inspired many Indians to promote Swadeshi Banks in the beginning of the 20th Century. The enterprising founders of Catholic Syrian Bank Ltd also found this period to be a moment of opportunity to promote the establishment of a bank. Thus was born The Catholic Syrian Bank Ltd, Nine decades ago, on 26th November 1920 to be exact at Thrissur, which in later years acquired the unique distinction of being a centre with the highest concentration of banks in the South. The founder directors of the bank were people of eminence known for their foresight, integrity and initiative. The policy they laid down has been consistently upheld by the successive generations who guided the destiny of the institution. The bank commenced business on January 1st, 1921 with an authorised capital of Rs.5lakhs and a paid up capital of Rs. 45270/During the first two decades of its functioning, the Bank concentrated only in Kerala. Banks and credit institutions which proliferated especially in Kerala received a jolt and many of them came to their doom following the crash of the Travancore National Quilon Bank in 1938 followed by Palai Central Bank in1960. During the period many small banks came to the verge of collapse shaking the confidence of the public and what followed was a process of consolidation. The strategy of mergers and amalgamations of small banks with bigger banks brought the number of banks within controllable limits, thereby making the industry's base strong. In 1964-65, The Catholic Syrian Bank Ltd took part in taking over the liabilities and assets of five small/medium sized banks in Kerala. The expansion programme initiated during these years gathered momentum in the subsequent years. In August 1969, the Bank was included in the Second Schedule to the Reserve Bank of India Act 1934. In 1975, the Bank attained the status of "A" Class Scheduled Bank when its total Deposits crossed Rs.25crores. The necessity of imparting training to staff looked very important and a modest beginning was therefore, made in setting up a Training College in 1975. In the same year the Bank entered the field of foreign Exchange. At a very early stage, the Bank recognised mechanisation as an effective tool of management and streamlined its accounting procedures by introduction of Data processing system. From November 1975, reconciliation of inter-branch accounts was mechanised by using IBM Data processing machines. The decade of the seventies saw the evolution of a new culture in Indian Banking. Nationalisation of banks imposed "Social Control" and imparted new ethos to commercial banking . What followed was a massive expansion of bank branches with a distinct thrust on remote rural belts. Special schemes were formulated to cater to the diverse credit needs of small scale industries, road transport operators, agriculturists, and other self employed entrepreneurs. The decade of the seventies saw the evolution of a new culture in Indian Banking. Nationalisation of banks imposed "Social Control" and imparted new ethos to commercial

16

banking . What followed was a massive expansion of bank branches with a distinct thrust on remote rural belts. Special schemes were formulated to cater to the diverse credit needs of small scale industries, road transport operators, agriculturists, and other self employed entrepreneurs. Investments in money market and capital market instruments are being expanded and steps are being taken to have an in house equity research wing so as to face the challenges of the future. The Bank has also geared up its machinery to increase its market share of corporate finance in the days to come. The real inner strength of a growing organization lies in its staff resources. The Bank has been singularly fortunate all these years in creating an environment in which the employees at all levels could play their role. Their contribution to the growth of this institution has been invaluable. The Bank has a very dynamic team on its Board of Directors who are guiding the destiny of the Bank leading to growth and prosperity. At present, the bank has a network of 364 branches which includes NRI/SSI/Industrial Finance and Service branches. The Bank also plans to open more number of branches in a phased manner. FOREX BUSINESS AND TREASURY OPERATIONS With the global economic recovery broadly on track and the Indian economy continuing to outperform most emerging markets, merchant activity and trading volumes in forex business of the Bank have made significant improvements. The export turnover for the year has increased to Rs907crore as against Rs754crore recorded during the year 2009-10. As a result, the total income from forex business for the year increased to Rs30.82crore from Rs23.64crore in the previous year. To facilitate remittance by NRIs, the Bank has drawing arrangements with 16 Exchange Houses and one Bank.

During the year, the Banks Integrated Treasury has continued to be an active player in the Inter-Bank Foreign Exchange market. With the US Dollar forward premium ruling high, the cost of US Dollar denominated foreign currency loans have moved up substantially during the year. As a result, the demand for such loans remained low during the year. As a result, your Bank deployed the funds in other profitable avenues including rupee assets. Due to the persistent upward bias in interest rates and liquidity tightness, the G Sec market too remained lacklustre for most part of the fiscal. Further, the stock market remained volatile and lost much of the gains shortly after peaking in November 2010. Despite the adverse conditions, your Bank made a trading profit of Rs 5.21crore. The yield on treasury investments has improved from 5.49% in 2009-2010 to 6.33% in 2010-2011.
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NEW BUSINESS ACTIVITIES The Any Branch Banking (ABB) facility was introduced with the intention of leveraging technology for providing better service to customers. For the convenience of customers, the business hours of all the branches were increased by 1 hour. Selected branches have been catering to the needs of the customers from 8.00 am to 8.00 pm. For providing instant fund transfer from the Middle East, a technology-based product CSBINSTAREMIT was launched. On the amount being credited, the exchange company generates through CSB an SMS, which is sent both to the beneficiary and to the remitter. Considering the low interest rate on NRE and FCNR deposits, the Bank has introduced a deposit product CSB NREPLUS for enabling NRIs to earn higher returns on their investments. The product helps non-residents to earn a higher interest rate on their deposits by effective use of the forward cover mechanism. CSB Support Line, a product more of a personal banking nature, provides customers on a phone call the privilege of enjoying various facilities like doctor and ambulance on call, ticket and hotel bookings, organising events like marriages and birthday parties, payment of taxes and utility bills and so on. BANCASSURANCE BUSINESS The Bank has Corporate Agency Tie-up arrangements with Birla Sunlife Insurance Company for life insurance business, the New India Assurance Company for general insurance business and Export Credit Guarantee Corporation of India (ECGC) for Export Credit Guarantee Insurance business. The Bank is also having Tie-up arrangements with leading Asset Management Companies for providing wealth management solutions through mutual funds. Vision to Excel Corporate Values, Vision and Mission Corporate Values Corporate values guide our relationships with customers, employees, shareholders etc. Corporate values are: 1. Fairness and Trust 2. Integrity and Transparency

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3. Dignity and Respect 4. Equity and Justice 5. Performance effectiveness and Efficiency

Corporate Mission To serve customers in an effective, efficient and professional manner building thereby mutually beneficial relationship to enhance shareholder value. BOARD OF DIRECTORS At the 89th Annual General Meeting of the Bank held on September 30, 2010, Sarvasree Venkataraman Krishnamurthy, K. Subrahmanya Sarma and Bobby Jos C. were appointed as directors of the Bank.At the conclusion of the Annual General Meeting, Directors Sarvasree Jos C.Chakko, Prakash G. Tole and S. Swaminathan ceased to be directors of the Bank in view of their decision not to seek re-appointment in the said Meeting. Reserve Bank of India has appointed Shri V.Seshadri as Additional Director on the Board with effect from January 24, 2011 in place of Shri. G. Sreekumar, who ceased to be Additional Director (RBI Nominee) after completion of the period of appointment on January 23,2011. PAID-UP CAPITAL AND RESERVES The Paid-up Capital of the Bank increased to Rs31.35crore as on March 31, 2011 from Rs18.93crore as on March 31, 2010. The free reserves and surplus went up to Rs337.30crore as on March 31, 2011 from Rs200.55crore as on March 31, 2010. AUGMENTATION OF SHARECAPITAL During the year, the Bank received Rs147.40crore (including premium of Rs134.98crore) as allotment money and call money towards the shares allotted on rights basis in the year 2009, and call money on shares allotted in the earlier years. CAPITAL ADEQUACY As per the Basel II Capital Adequacy Framework, the Capital to Risk Weighted Assets Ratio (CRAR), as assessed by the Bank as on 31st March 2011, is 11.22% as against the minimum CRAR of 9% stipulated by the Reserve Bank of India. The Tier I CRAR stood at 9.42%, well above the minimum of 6%.

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BRANCH NETWORK The Banks branch network as on 31st March 2011 is as under: Area Branches % to Total Metro 49 14 Urban Semi Urban Rural Total 91 182 42 364 25 50 11 100

The Bank has 1 Circle Office and 9 Zonal Offices. DEPOSITS The deposits of the bank in the year 2007-2008, have increased from Rs4748.60crores to Rs5317.62crores. Consequently, in 2008-2009 deposits of Rs6332.83crores increased to Rs6978.35crores. Finally, in 2010-2011 deposits have increased upto Rs8725.67crores. ADVANCES Net advances of the bank rose from Rs3012.64crores to Rs3313.56crores. The amount of advances in the year 2008-2009 was Rs3683.84crores which has increased to Rs4466.94crores in 2009-2010. In 2010-2011, advances increased to Rs6220.02crores. CATHOLIC SYRIAN BANK Ltd PALARIVATTOM BRANCH

Catholic Syrian Bank

Catholic Syrian Bank is a private sector bank based in Thrissur, Kerala. It was formed on 26th November, 1920. The bank is located at Thrissur, Kerala in India. CSB had authorized capital of Rs. 5 lakhs and paid up capital of Rs. 45270 as on January 1st 1921. Catholic Syrian Bank got the status of Second Scheduled Bank in 1969 by the Reserve Bank of India Act 1934. It acquired the status of "A" Class Scheduled Bank in 1975 crossing total deposits of Rs. 25 crores. The dominant presence of Catholic Syrian Bank is felt in rural regions in India. All the products and services of the bank are designed to offer maximum customer satisfaction. These

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products and services always keep pace with the evolving market trends. Nearly 80% of the branches of Catholic Syrian Bank are based in the rural and semi-urban regions of India. www.csb.co.in has total 364 branches till 2010-2011 in all over India. CSB operates its banking business establishing branches in most of the Indian State. www.csb.co.in has established zonal offices in Chennai, Coimbatore, Ernakulam, Kottayam, Kozhikode, Mumbai, Thiruvananthapuram, Thrissur and New Delhi. CSB has a large network of more than 125 ATMs. Branches of the bank can be categorized into NRI branches, SSI branches, industrial finance branches and service branches. Catholic Syrian Bank opened its branch at palarivattom on 12th April 1993. Opened as General Bank on 12th December 2005. At present there are 4 employees in this Branch including the Manager. Present Manager is Anil Kumar K.S, Assistant Manager Praveena M.D, and the remaining 2 clerks Anitha Jose and Achamma. Per employee business as on 30th December 2011 was 1120lakhs. Catholic Syrian Bank Services: Catholic Syrian Bank is mainly involved in Insurance, Deposits, Advances, RTGS NEFT and International Money Transfer services. FD, Family Wale fare, DOT Deposit, Acharya Deposits, Savings Account, Current Account and CSB Tax Support are the main products of Deposit services of Catholic Syrian Bank. CSB offers NRO Accounts, NRE Accounts, FCNR Accounts, RFC Accounts and Loans for NRI customers. There is a branch also for NRI customers in Thrissur.

Catholic Syrian Bank is expert in providing mobile banking services also. These services are balance inquiry, fund transfer between accounts within the bank, mini statement, utility payments-prepaid recharge, postpaid bill and other payments like water, electricity bills, DTH Top-up. CSB achieved 12.18crores net profit and 11.22% capital adequacy ratio in 2010-2011. The bank had total 2820 staffs till 2010-11. Strength of Catholic Syrian Bank can be assumed by its capital assets, staffs and large network of branches. Catholic Syrian Bank also intends to set up more branches in a step by step fashion. The bank always considers the preferences of the customers as a priority. The products and services of Catholic Syrian Bank can be categorized into the following types: Deposits

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1.

Fixed Deposit

The term fixed deposit means deposit repayable after the expiry of a specified period. Minimum amount for opening account is Rs.100/- Accounts may be opened in odd sums. Deposits are accepted for periods of 7 days and above and even for a period where terminal quarter or month is incomplete. Interest is paid at quarterly or longer rests at the full value of interest.The same is paid monthly at the discounted value of interest. The maximum period for which term deposits are accepted is 10 years. Exceptions Deposits are accepted under Court orders. Deposits in the names of minors for protection of minor's interest. In case of minors, accounts can be opened. In the single name of the minor under guardianship, the deposit being repayable to him/her. In the single name of the minor under guardianship, the deposit being repayable to the guardian. In the name of the minor, jointly with the guardian, the deposit being repayable to them jointly / former or survivor /either or survivor.

2.

Family Welfare

It is a reinvestment deposit scheme. Interest accrues both on the principal and the interest thereon. Minimum amount for opening the account is Rs.100/- Accounts may also be opened in odd sums. Deposits are accepted for a minimum period of six months for periods in multiples of three months or in incomplete quarters. The maximum period for which term deposits are accepted is 10 years. Exceptions Deposits are accepted under Court orders. Deposits in the names of minors for protection of minor's interest. In case of minors, accounts can be opened in the single name of the minor under guardianship, the deposit being repayable to him/her.

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In the single name of the minor under guardianship, the deposit being repayable to the guardian. In the name of the minor, jointly with the guardian, the deposit being repayable to them jointly / former or survivor /either or survivor. 3. CSB Tax Savings Support

As per Finance Act 2006, deposits made with banks, in terms of Central Government notification (No.203/2006 dated 28.07.2006) are eligible for deduction under Section 80 C for income tax purpose. The scheme has been short titled as Bank Term Deposit Scheme 2006. Accordingly, the bank renamed the deposit scheme as CSB Tax Savings Support. The salient features of which are mentioned below: 1. Title and types of deposit Deposits can be made as ordinary fixed or reinvestment deposits under the following schemes: (a) CSB Tax Savings Support - Income. (b) CSB Tax Savings Support - Growth. 2. Eligibility The deposits can be opened by: (a) Individuals either singly or jointly. (b) Hindu undivided family. The single deposits shall be accepted from an individual for himself or in the capacity of the Karta of the Hindu undivided family. The joint deposits shall be accepted from two adults or from an adult and a minor jointly, and payable to either of the holders or to the survivor. * * In the case of joint deposit, the deduction from income under section 80C of the Act will be available only to the first holder of the deposit. 3. Amount of Investment The amount of investment shall be Rupees one hundred or multiples thereof, subject to a

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maximum of Rupees one lakh in a financial year. 4. Period of Deposit Deposit shall be for a period of five years. 5. Rate of interest (a) The rate of interest will be the rate applicable for domestic term deposits fixed by the bank from time to time. (a) The interest will be paid either in lump sum at the time of maturity or every quarter/ month (at discounted rate) as per the request. (b) Senior Citizen will be eligible for additional interest fixed by the bank from time to time. 6. Nomination (a) Nomination can be made by the single holder or the joint holders, as the case may be, in favour of any one individual. (b) Nomination can be made any time before the date of maturity of the deposit, i.e either on the date of deposit or during the tenor of deposit. (c) Nomination shall not be accepted in respect of a deposit applied/accepted for and held by or on behalf of a minor. 7. Encashment on maturity The deposit can be encashed only after five years and no premature withdrawal is allowed and shall not be pledged to secure loan or as security to any other asset. 8. Pledging of term deposit The deposits under the scheme shall not be pledged to secure loan or as security to any other asset. 9. Income tax (a) Interest on this term deposits will be liable to tax under the Act, on the basis of annual accrual or receipt depending upon the simple interest or compound interest scheme and tax on such interest will be deducted as usual. (b) The tax on such interest shall be deducted in accordance with the provisions of section 194A or section 195 of the Act. The amount invested in the scheme is eligible for tax exemption u/s 80C upto a limit of Rs.1,00,000/- (One Lakhs Only) in a financial year. 4. Savings Account
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Savings deposit account or savings bank account is meant for individuals who wish to deposit small amounts out of their current income. It helps in safeguarding their future and also earning interest on the savings. A saving account can be opened with or without cheque book facility. Saving account holders are also allowed to deposit cheques, drafts, dividend warrants etc. drawn in their favour for collection by the bank. It is an account for individuals, either singly or jointly ,non-trading organization institutions. Account can be opened for a minimum amount of Rs. 100/- (Rs.250 for computerised branches). Cheque book facility for a minimum balance of Rs.250/ (Rs.250 for computerised branches). Account can be opened even in the name of a minor aged 12, allowing him /her to operate provided he/she presents himself /herself at the bank for each withdrawal. A minor who has attained 14 years of age can open and operate the account individually in same manner as an adult. Up-country cheques up to Rs.5,000/-are given immediate credit to individual account holders by charging usual commission and postage on stipulated conditions. Standing instructions of the account holder with regard to payment of premium, rent, etc.are accepted and acted upon promptly. Cheques, Drafts,pension,dividend warrants,etc. are accepted and collected for credit to the account. Account can be transferred to any other office of the bank, free of charge. 5. Acharya Deposits

All senior citizens 60 plus, excluding NRI are eligible Acharya Deposit Scheme. Minimum Amount to be deposited is Rs5,000 and Minimum Period of Deposit is 6 months. 6. DOT Deposit

It is a bit of both term deposit and savings bank deposit and brings the best of both. This unique scheme allows to deposit money in units of Rs.1000/- (Minimum 10 units) for a term that ranges from 6 months to 5 years. And gives two attractive options for withdrawing it. One option lets to withdraw any number of units whenever the customer need money by paying only a penalty of 1% for the number of units withdrawn. While the balance amount will earn interest at the contracted rate. And the second option enables to avail a loan against the deposit whenever customers are strapped for cash. 7. Cumulative Deposit

This type of deposit enables the depositor to build up a sizeable capital in a regular systematic way. The maximum period for which term deposits are accepted is 10 years. The account can be opened with a minimum monthly remittance of Rs.5/- or multiples thereof. The remittances may also be in odd sums.
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Exceptions: Deposits accepted under Court orders. In case of minors, accounts can be opened. In the single name of the minor under guardianship, the deposit being repayable to him/her. In the single name of the minor under guardianship, the deposit being repayable to the guardian. In the name of the minor, jointly with the guardian, the deposit being repayable to them jointly /former or survivor /either or survivor. 8. CSB Student Savings Scheme

A savings bank account with the following features: Eligibility: Students of recognized/reputed Schools/Colleges/ Professional Course Entrance Coaching Centres including Professional Colleges, from Standard IX onwards upto Final Year of Diploma/ Graduation/Post Graduation. Introduction: By the Head of the Educational Institution where the student is pursuing his/her studies or by any properly introduced existing customer. If the account is opened with the introduction of a person other than the Head of the Institution, satisfactory proof to the effect that the applicant is a student, such as copy of the fee receipt, certificate from the educational institution etc should be produced. Initial Remittance and Minimum Balance: The accounts can be opened and operated on Zero balance basis and there will be no stipulation regarding minimum balance.Cheque Books and ATM Cards/Global Support Cards will be issued to account holders under this scheme, wherever feasible, free of cost. However, no cheque books will be issued, irrespective of whether ATM card/ Global Support Card has been issued or not.

Current Account

It is mainly used by the traders, businessmen, corporate bodies etc. who operate their accounts frequently. Minimum amount for opening an account is Rs.5000/- in Metro
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Branches,Rs 3000/- in UrbanBranches,Rs 2000/- in semi urban branches and Rs 500/- in rural Branches. Rate of interest is Nil. Standing instructions of the account holder with regard to payment of premium, rent, etc. are accepted and acted upon promptly. Cheques, Drafts, pension, dividend warrants,etc. are accepted and collected for credit to the account. Account can be transferred to any other office of the bank, free of charge. ADVANCES 1. Gold Loan / Kanakashree Gold Loan - General Category Finance upto Rs.1700.00 per gram For HALLMARKED GOLD - Special Rate - Rs1800/ per gram Interest rate - 13.50% p.a. Period - 1 year Gold Loan under Agriculture - Interest rate - 11.50% p.a. Finance upto Rs 1800 per gram Kanakashree A unique Overdraft facility against pledge of Gold Ornaments at an interest rate of 14.00% p.a. Finance upto Rs1800.00 per gram. Gold Loan - CSB...Ezee Gold Cash Finance upto Rs1800.00 per gram For HALLMARKED GOLD - Special Rate - Rs1900.00 per gram Interest rate - 12.50% p.a. Period - 6 months. Gold Loan - CSB...Swarna Nidhi Finance upto Rs1800.00 per gram For HALLMARKED GOLD - Special Rate - Rs1900.00 per gram Interest rate - 12.50% p.a. Period - 1 year. Gold Loan - CSB...Gold Power

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Finance upto 90% of the market value or the rate fixed by Bank from time to time, presently Rs2100.00 per gram Interest rate - 12.50% p.a. Period - 1 month. 2. CASY MITHRA - A PERSONAL LOAN SCHEME FOR INDIVIDUALS Advance to be given for any legally permitted purpose. Minimum amount of advance is Rs.0.50lakhs and maximum is Rs.25lakhs. Personal guarantee of atleast one person, preferably spouse of the applicant. Floating rate of interest at 18.25% p.a. Repayment period is allowed for a maximum of 5 years. 3. Casy Cash Scheme A hassle free loan scheme for Self-employed, Salaried persons and others having regular income for meeting their personal financial needs. Rate of interest is 19.25% p.a. repayment is given in equated monthly instalments. Minimum period is 12 months and maximum is for 48 months. 4. Educational Loan The rate of interest for educational loan is Upto Rs4.00lakh - 14.50%p.a .if it is Above Rs4.00lakh - 15.00%p.a 5. Medicash It is an exclusive Overdraft facility for Registered Medical Practitioners with MBBS/BDS and higher qualifications for meeting their financial requirements. Quantum of finance is Rs2lakh or 5 times monthly Gross income, whichever is less. Rate of interest is 17.75% p.a. Guarantee: One person of good means, preferably spouse. Repayment: Renewable every year. Interest to be paid as and when debited. Being an Overdraft Facility with in-built operational flexibility, interest to be paid on the actual balances only.

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6. Tax Payer's Liquidity Scheme A thoughtfully designed loan scheme for Income Tax payers engaged either in business or in profession. Rate of interest is 18.25%. 7. VIP Car Loan Eligible for Individuals /Groups: having funded limits not less than Rs.25 lakh having Term Deposits of not less than Rs.25 lakh with the Bank for acquiring vehicles for personal use. Quantum of Finance is 100% of Invoice Value excluding Insurance, registration, road tax etc. Rate of Interest is 11.50% to 12.50%. Hypothecation of the Vehicle is the security. One person with good means is the guarantee. 8. Car Loan Car Loan Scheme For acquiring Car, Van, Jeep etc. for personal use. Eligibility : For persons having assets and income enough for regular repayment of the advance. Documentary evidence of income should be submitted. Quantum of Finance : 80% of Invoice Value and road tax. Invoice Value includes Excise duty, Sales tax etc. but excludes insurance, registration and other incidental charges. Rate of Interest is 11.50% to 12.50% Security: Hypothecation of the Vehicle. Guarantee One person with good means, if collateral security is not offered or undertaking for salary deduction is not available. Guarantee of spouse should be given preference. 9. Agricultural Finance This scheme is used for the following:
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Short term production loans( crop loans) for purchase of inputs. Loans for purchase of farm machinery. Loans for horticulture and plantation. Loans for allied agricultural activities which include dairy, poultry, goat/sheep rearing, fishery, prawn culture, piggery, sericulture, aquaculture, ductery,rabbit farming,quail farming mashroom cultivation etc. Loans for construction of biogas plants. 10.Personal Loan CONSUMER LOAN (PERSONAL) FOR EMPLOYEES OF REPUTED FIRMS Permanent employees of reputed firms and institutions with minimum three years of confirmed service. The purpose of the loan is to meet the personal necessities of the applicant. Maximum loan amount is 10 times of gross monthly salary. Personal guarantee of one confirmed employee is required. Either borrower or guarantor should have completed five years of confirmed service. One person shall not guarantee loans of more than two borrowers. The loan should be repaid in within a maximum period of 60 months. Total deductions including the instalments of the proposed loan should not exceed 50% of gross salary. Interest rate is 18.25% p.a. 11. Loan to Doctors & Hospitals Catholic Syrian Bank provides finance to Doctors, Hospitals and Nursing home to buy hospital equipments, build new hospitals, renovate or expand the existing ones. Doctors, small hospitals, nursing home etc., which are organised as private/public limited companies, partnership/proprietary concerns, or trusts which have facilities for diagnosis and treatment of indoor as well as outdoor patient with 10 or more beds. Maximum repayment period is 8 years.

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THEORITICAL FRAMEWORK DEPOSIT

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One of the major growth oriented function of the banking industry is the mobilization of deposits which serves the basis of capital formation and facilities the process of economic development. The role of banking industry essentially is to mobilize and appropriately canalize savings which is the second stage of capital formation. The importance of banking lies in providing suitable oppurtunities to collect together the savings and in influencing the willingness of the people to save and invest. In this world, banking also has undergone significant changes over the year. Banks are the backbone of all industries because , every transaction were money is involved, the bank is the main character , banks attract savings from the public, encourage investment in industry, trade and commerce. Banks deals with money, it accepts deposits and advances loans, it also deals with credit. Deposits are most important function of bank, that is accepting deposits. The banks will raise fund through accepting deposits through people. The major part of income is earned from interest and discount on the funds so lend. Deposit account are one of the important source of bank funds. In order to attract customers the banks offer attractive facilities to different type of deposits account holders.

BANKING Banking means accepting for the purpose of lending and investment of deposits of money from the public, repayable on demand, order or otherwise and withdrawable by cheques, drafts, order or otherwise. -BANKING REGULATION ACT, 1949

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BANKING COMPANY A banking company is a company which transacts the business of banking in India. -BANKING REGULATION ACT,1949. The term bank in the modern times refers to an institution having the following features; It also deals with credit, it has the ability to create that is the ability to expand its liabilities as a multiple of its reserves. It deals with money, if accept deposits and advances loans. It is commercial institution, it aims at earning profit. It is a unique financial institution that creates demand deposits which serves as a medium of exchange and, as a result, the manage the payment system of the country.

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